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News Link • Economy - Economics USA

Multi-Billion Fund Manager Freezes Redemptions At Bond Funds

•, by Tyler Durden

Fast forward to today, when Swiss multi-billion asset manager, GAM Holdings announced it has frozen withdrawals at some of its bond funds after a surge in redemptions from clients who sought withdraw their money following the suspension of manager Tim Haywood, the latest in a series of setbacks that sent the company's shares into a tailspin. 

GAM's troubles started last month, when as we reported at the time there was market speculation that a market neutral quant fund it had purchased in October 2017, Cantab Capital Partners, was in trouble, with some pointing fingers at AQR. Perhaps, but it turns out that GAM was also involved when the fund warned of a writedown due to losses at one of its quant hedge funds. The announcement launched a slide in its shares that only accelerated after this week's suspension of Haywood, who headed the firm's second-largest strategy, and a warning by CEO Alex Friedman that clients may allocate less money to the firm because of volatile market conditions, accelerated the slump.

Quoted by Bloomberg, Chairman Hugh Scott-Barrett sought to soothe investor fears, saying he's open to all ways to strengthen the stock price.

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